Industrial Hydraulic Equipment Market Size, Share, and Growth Forecast for 2024 - 2031

Industrial Hydraulic Equipment Market Size and Share Analysis

The global industrial hydraulic equipment market is set to witness a CAGR of 5.2% from 2024 to 2031. The market is projected to rise from US$ 28.5 Bn in 2024 to a considerable US$ 40.6 Bn by 2031. Increasing demand for hydraulic pumps, cylinders, and valves across applications like material handling, construction, and industrial manufacturing is estimated to boost growth.

Hydraulic pumps and cylinders, known for their durability and efficiency, are particularly sought after in heavy-duty applications. These offer robust power solutions essential in high-demand environments. Hydraulic valves also play a key role, enhancing system precision and efficiency, which supports productivity across industries relying on powerful machinery.

According to data from the International Trade Administration (ITA), the global demand for hydraulic components, particularly in the construction and manufacturing sectors, is forecast to rise substantially. This is due to rapid infrastructure development activities in emerging countries. Demand for these components is also reflected in the distribution channel. Direct sales to large industrial firms and partnerships with specialized distributors are set to enable broader market reach and accessibility.

Key Highlights of the Market

• Increased government investments in infrastructure projects globally are set to drive demand for hydraulic equipment used in construction and heavy machinery.
• Growing focus on automation across various industries necessitates unique hydraulic systems to enhance operational efficiency and productivity.
• Innovations in hydraulic technology, such as smart hydraulics and IoT integration, present opportunities for manufacturers to develop efficient and user-friendly solutions.
• Rapid industrialization in emerging regions, particularly in Asia Pacific and Africa, creates significant growth potential for hydraulic equipment suppliers in these regions.
• In terms of product type, the hydraulic pump category is anticipated to witness a CAGR of 4.8% through 2031 with high demand for construction and agricultural machinery.
• Based on application, the material handling segment is projected to showcase a CAGR of 5.4% through 2031 amid rising adoption of automation in warehouses.
• The U.S. is estimated to dominate with a CAGR of 4.7% through 2031 as manufacturing and automotive sectors continue to invest in hydraulic equipment.
• India is anticipated to capture a CAGR of 5.7% through 2031 amid infrastructure development initiatives and rapid industrialization.

Market Attributes	Key Insights
Industrial Hydraulic Equipment Market Size (2024E)	US$ 28.5 Bn
Projected Market Value (2031F)	US$ 40.6 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	5.2%
Historical Market Growth Rate (CAGR 2019 to 2023)	4.1%

U.S. Hydraulic Equipment Market Leads as Companies Focus on Expansion Plans

Country	CAGR through 2031
U.S.	4.7%

The U.S. is projected to witness an average CAGR of 4.7% through 2031 in North America. The country also commands a substantial share of the North America industrial hydraulic lift table industry.

Growth is set to be driven by its advanced manufacturing capabilities and robust industrial foundation. The country's commitment to infrastructure development and modernization of machinery across sectors such as construction and industrial manufacturing also fuels demand.

The U.S. further benefits from a diverse range of applications, particularly in material handling and construction equipment, where hydraulic technology is crucial for efficiency and power. This demand surpasses that of Canada and Mexico, which have smaller industrial bases and lower levels of infrastructure investment relative to the U.S. The country also houses a large number of well-established manufacturing companies focusing on gaining high profits. For instance,

• Parker Hannifin Corporation recently announced a strategic expansion of its manufacturing facilities to enhance production capabilities. This move is aimed at meeting the growing demand for hydraulic components driven by automation and Industry 4.0 initiatives. The strategy is set to solidify Parker's position as a key player in the industrial hydraulic equipment industry.

India Sees High Demand for Hydraulic Industrial Lifts from Infrastructure Projects

Country	CAGR through 2031
India	5.7%

India is expected to witness a notable CAGR of about 5.7% through 2031 in South Asia and Pacific. This growth is set to be fueled by swift industrialization and an expanding manufacturing sector. The government's focus on infrastructure development, such as highways and urban transit systems, further accelerates demand for hydraulic systems across various applications.

India is currently leveraging its extensive applications in construction machinery, agriculture, and material handling equipment. Compared to neighboring countries like Sri Lanka and Bangladesh, India benefits from a larger industrial base and more substantial investments in automation. These factors are making it a central hub for hydraulic metal press production and utilization.

A key competitor in the country’s market is Hydraulic Systems (India) Ltd. It recently extended its product range to include novel hydraulic cylinders designed for high-efficiency applications. This development aligns with the increasing demand for innovative hydraulic solutions in industries like construction and agriculture. The strategy is set to help position the company as a vital player in the regional market.

Hydraulic Pumps Lead due to High Efficiency and Versatility Properties

Category	CAGR through 2031
Product Type- Hydraulic Pump	4.8%

By product type, the hydraulic pump segment is set to dominate in the coming years at a CAGR of 4.8%. These pumps play a key role, converting mechanical energy into hydraulic energy, which contributes significantly to their high market share. Their high versatility and efficiency make them crucial components in various applications.

Globally, hydraulic pumps lead across multiple sectors, including construction, manufacturing, and agriculture, where they power machinery such as excavators, forklifts, and tractors. Increasing demand for automation and efficiency in these industries further propels the adoption of hydraulic pumps, outpacing other product types like valves and motors. Companies are also targeting industries looking for these pumps to increase shares. For instance,

• Bosch Rexroth recently launched a new line of high-efficiency hydraulic pumps designed to reduce energy consumption while maintaining performance. This innovation aligns with the trend toward sustainability and energy efficiency, reinforcing Bosch Rexroth’s leadership in the hydraulic pumps segment.

Logistics and Warehousing Firms Seek Cutting-edge Material Handling Equipment

Category	CAGR through 2031
Application- Material Handling	5.4%

The material handling segment by application is estimated to achieve a CAGR of 5.4% from 2024 to 2031. It will likely be driven by its essential role in improving operational efficiency and productivity. The need for effective and reliable systems to move, lift, and store goods drives demand for hydraulic solutions in this application.

Material handling applications dominate industries such as logistics, warehousing, and construction, where hydraulic equipment is used in forklifts, conveyors, and automated storage systems. This widespread adoption is fueled by the growth of e-commerce and increasing need for streamlined supply chains. Hence, the segment is set to surpass other applications like construction and agriculture in terms of market share. Companies are constantly investing huge sums in the development of innovative material handling hydraulic trolleys. For instance,

• Toyota Industries Corporation recently introduced unique hydraulic systems for its forklifts to improve energy efficiency and reduce operational costs. This development showcases Toyota’s commitment to innovation and positions it strongly in the competitive landscape of the material handling sector.

Market Introduction and Trend Analysis

The industrial hydraulic equipment market is poised for substantial growth, driven by adoption of automation and rapid infrastructure development across emerging economies. Future opportunities lie in unique hydraulic systems that integrate IoT and smart technology to enhance efficiency and reliability. As industries like construction, manufacturing, and logistics evolve, demand for sustainable, energy-efficient solutions will create significant growth potential.

The global market is currently witnessing a rising trend toward digitization and energy efficiency. Vertical hydraulic press machine manufacturers are increasingly focusing on developing smart, compact, and high-performance systems. These mainly cater to the growing emphasis on automated and remote-controlled operations. This shift is also supported by a push for environmental sustainability, encouraging the adoption of eco-friendly hydraulic systems that reduce energy consumption and emissions.

The trend toward sustainable and automated systems is particularly influential in applications like material handling, construction, and heavy machinery, where precise control and reliability are essential. End users in these sectors are prioritizing hydraulic solutions that enhance productivity. These are also aligning with sustainability goals, thereby fueling demand for innovative, high-efficiency equipment.

Historical Growth and Course Ahead

The global industrial hydraulic equipment industry experienced a steady CAGR of 4.1% during the historical period from 2019 to 2023. It demonstrated consistent growth over the past ten years, mainly fueled by increased automation in manufacturing and expansion of infrastructure globally. As industries sought efficiency and power, hydraulic systems became integral to applications in construction, agriculture, and material handling.

Driven by the push for energy-efficient solutions and digital innovations, hydraulic equipment continues to evolve. It is set to meet the rising demand for high-performance hydraulic lifts for material handling across diverse sectors. Key players also launched new equipment to attract a large consumer base. For instance,

• In 2023, Bosch Rexroth launched its energy-saving hydraulic pump series, aligning with global sustainability goals by reducing operational energy consumption.

Sales of industrial hydraulic equipment are estimated to record a CAGR of 5.2% during the forecast period between 2024 and 2031. It will likely be driven by rising construction activities in both developed and developing countries.

Market Growth Drivers

Rapid Adoption of Automation in Industries to Fuel Demand

Rising focus on automation across manufacturing industries is a leading force behind the industrial hydraulic equipment market growth. Industries such as automotive, aerospace, and electronics increasingly rely on automated machinery. Here, hydraulic systems provide the precision and power essential for high-output processes. This trend has boosted demand for hydraulic pumps, cylinders, and valves in automated production lines.

Hydraulic systems also offer durability and efficiency, making these ideal for automated operations that require consistent performance. This shift toward automation also encourages investment in innovative hydraulic solutions. These can be easily integrated into modern, digitally managed manufacturing environments. For instance,

• In November 2022, Eaton introduced its Smart Power Hydraulic Systems for automated manufacturing. These featured sensors and IoT connectivity for enhanced operational efficiency and monitoring.

Increasing Global Construction Activities to Spur Demand

Rapid urbanization and infrastructure development in emerging economies are significant growth catalysts for the hydraulic material handling equipment industry. Construction applications, including excavation, material handling, and building equipment, depend heavily on hydraulic systems due to their high-force capabilities and reliability. The rise of construction projects globally, particularly in Asia Pacific and the Middle East, continues to fuel demand.

In construction, hydraulic equipment is essential for tasks requiring heavy lifting and maneuvering in rugged environments, which has accelerated its adoption. Hydraulic solutions also support construction efficiency, further improving project timelines and enabling sustainable construction practices. Key companies are striving to launch new products to cater to the needs of various industries. For instance,

• In May 2023, Caterpillar launched its next-generation hydraulic excavators. These were designed with enhanced fuel efficiency and low emissions, aligning with growing demand for sustainable construction solutions.

Market Restraining Factors

Complex Technology Integration and Skilled Labor Shortage May Hamper Demand

The vertical hydraulic press machine industry faces challenges associated with the integration of unique technologies and the shortage of skilled labor. As industries increasingly adopt IoT and automation, hydraulic equipment must evolve to accommodate these innovations. However, the complexity of integrating new technologies may impede the adoption of modern hydraulic systems.

The industry is further experiencing a significant shortage of skilled workers trained in hydraulic system design, maintenance, and operation. This gap in expertise is set to hinder the efficient deployment and utilization of hydraulic solutions, affecting market growth and innovation.

Key Market Opportunities

Companies Target Germany to Offer Sustainable Hydraulic Solutions

Germany presents a significant opportunity for the industrial hydraulic press market, driven by its commitment to sustainability and environmental regulations. As one of the largest manufacturing hubs in Europe, the country is investing heavily in green technologies and energy-efficient systems.

The trend further encourages the development of hydraulic solutions that minimize energy consumption and reduce emissions, aligning with the European Union’s (EU) stringent environmental goals. Companies that focus on sustainable innovations in hydraulic systems are likely to gain a competitive edge in this evolving landscape.

The integration of biodegradable hydraulic fluids and energy-efficient hydraulic designs is becoming a focus for manufacturers. It is allowing them to meet regulatory requirements while enhancing their market presence. Companies developing these eco-friendly solutions are positioned to capture the growing demand for sustainable equipment.

Opportunity in Automation and IoT Integration Lies in the U.S.

The U.S. offers substantial growth opportunities for the industrial hydraulic equipment market, particularly in automation and IoT integration. With industries focusing on operational efficiency and digital transformation, hydraulic systems equipped with smart technologies are in high demand. This shift is especially pronounced in sectors like manufacturing, automotive, and aerospace. These require advanced hydraulic solutions to significantly enhance productivity and performance.

Hydraulic equipment manufacturers are also leveraging IoT technology to provide real-time monitoring and predictive maintenance solutions. These advancements enable them to optimize their operations, reduce downtime, and extend equipment life, thereby enhancing efficiency and profitability.

Competitive Landscape for the Industrial Hydraulic Equipment Market

The competitive landscape of the industrial handling equipment industry is marked by key players such as Bosch Rexroth, Eaton, Parker Hannifin, and Caterpillar. These companies dominate the global market by leveraging their extensive product portfolios, technological expertise, and robust distribution networks. Their ability to innovate and adapt to changing market demands positions them advantageously, enabling them to maintain significant shares across various regions and applications.

To gain market share and capitalize on emerging opportunities, these players are increasingly investing in research and development for unique hydraulic technologies. Additionally, they are forming strategic partnerships and collaborations to enhance their product offerings and enter new areas.

Focus on sustainability and automation further drives their strategic movements. These often align with global trends and customer preferences for energy-efficient and digitally integrated solutions.

Recent Industry Developments in Industrial Hydraulic Equipment Market

• In April 2023, Parker Hannifin, based in the U.S., introduced a new line of electric actuators designed to enhance energy efficiency and reduce operational costs in various industrial applications. These electric actuators aim to provide more precise control and performance compared to traditional hydraulic systems.
• In June 2023, Germany-based Bosch Rexroth announced the expansion of its production facilities in South Carolina, U.S., to meet the increasing demand for hydraulic components in the North America. This expansion includes the addition of new manufacturing technologies and capabilities.
• In August 2023, Eaton Corporation, headquartered in Ireland, completed the acquisition of Tuthill Corporation’s hydraulic division. It strengthened the company’s portfolio and enhanced its capabilities in hydraulic systems for various industries, including agriculture and construction.
• In September 2023, Caterpillar Inc., based in the U.S., launched a new series of hydraulic excavators featuring unique hydraulic technology and improved fuel efficiency. This launch aligns with the company’s commitment to sustainability and operational efficiency in construction.  

Industrial Hydraulic Equipment Market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Billion for Value
Key Regions Covered	North America Europe East Asia South Asia and Pacific The Middle East and Africa Latin America
Key Market Segments Covered	Product Type Application Distribution Channel Region
Key Companies Profiled in the Report	Bosch Rexroth AG Parker Hannifin Corporation Eaton Corporation Caterpillar Inc. Danfoss A/S Hydac International GmbH Kawasaki Heavy Industries Ltd. Liebherr Group KYB Corporation SMC Corporation Bucher Hydraulics HAWE Hydraulik SE
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization and Pricing	Available upon request

Industrial Hydraulic Equipment Market Segmentation

By Product Type

• Hydraulic Pump
• Hydraulic Valve
• Hydraulic Motors
• Hydraulic Cylinders
• Others

By Application

• Material Handling
• Construction
• Agriculture
• Industrial Manufacturing
• Mining
• Oil and Gas

By Distribution Channel

• Direct Sales
• Distributors and Resellers

By Region

• North America
• Europe
• East Asia
• South Asia and Pacific
• Latin America
• The Middle East and Africa

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